This paper considers a frictional market where buyers and sellers, with unit demand and supply, search for trading … opportunities. The analysis focuses on explicit search frictions, allows for two-sided incomplete information, and puts no … restriction on agent heterogeneity. In this context, a non-trivial, full trade search equilibrium is shown to exist, equilibria …

(theoretically) that adding search to a simple bargaining mechanism eliminates some unsatisfactory features of bargaining theory. Our …, the buyer can choose to leave the negotiation table to search for other alternatives. Under one version, if the buyer … chooses to search for a better price, the opportunity to purchase the good at the stated price is gone. Under the second …

We prove existence of steady-state equilibrium in a class of matching models with search frictions. …

In a two-sided search market agents are paired to bargain over a unit surplus. The matching market serves as an … endogenous outside option for a bargaining agent. Behavioral agents are commitment types that demand a constant portion of the …, there is one-sided reputation building in bargaining, and commitment types on the short side determine the terms of trade …

We prove existence of steady-state equilibrium in a class of matching models with search frictions. …

have to search for a suitable counterparty, and once they meet, both parties negotiate the size of the loan and the …

. Agents engage in costly search and meet randomly. The terms of trade are determined through bilateral bargaining between … costs of search become small, all equilibria of the market game converge to perfectly competitive equilibria. …

In a two-sided search market agents are paired to bargain over a unit surplus. The matching market serves as an … endogenous outside option for agents in a bargaining relationship. Behavioral agents are (strategically inflexible) commitment … efficiency. In an unbalanced market where the entering flow of one side is short, bargaining follows equilibrium play in a …

We prove existence of steady-state equilibrium in a class of matching modelswith search frictions. …